Can someone explain why TuboTax suggests an itemized deduction over standard? My itemized deduction shows as $10,273 and I am married filing jointly. Thanks

[warnerpr]

I have 2 kids, live in NY.
TurboTax calculates the taxes due/refund within $1,000 of each other, so I guess it's close,  but I can't imagine it's close at all given.
I've got $3,000 in capital losses, and some AMT credit from previous years, but I don't think those even factor in?

[Mike9241]

if you're filing jointly what about the amount of your spouse's itemized deductions? 

[MaryK4 · Accepted solution]

The AMT credit looks like it is the main factor in the reduced itemized deduction (without seeing your return, this is not 100% certain but the AMT will produce the results you describe.)  Since the Standard deduction for Married Filing Jointly is $25,900, removing the AMT credit would probably increase the tax due significantly.

[warnerpr]

It is AMT.

I had to compare the 1040 carefully in both options.
Basically, I can deduct ~$5K of AMT carryover credit if I itemize, and ~$1K if I take the standard deduction.

Since tax due is only ~$100 less if I itemize and eat an extra $4K of credit, I think I just take the standard deduction and retain the extra AMT carry over credit.  Even with high interest rates $100 today will take a long time to be worth $4K....